Search

Devon Energy to Sell Assets in Gabon for $205.5 Million

OKLAHOMA CITY, Nov. 13 /CNW/ -- Devon Energy Corporation (NYSE: DVN)
today announced that it has agreed to sell its oil and gas business located
offshore Gabon to Oranje-Nassau Energie B.V., a subsidiary of Oranje-Nassau
Groep B.V. The purchase price is $205.5 million. Devon expects to incur no
taxes on the transaction.
The divestiture assets in Gabon include an interest in the Kowe block,
currently producing approximately 3,750 barrels of oil per day, net to Devon's
interest. Also included are Devon's interest in the Agali exploration block
and an option to earn an interest in the Gryphon Marin exploration block.
Completion of the transaction is subject to approval by the Gabonese
government. Closing is anticipated by year-end 2007.
"The properties in Gabon are a part of the West African divestiture
package we announced early this year," said John Richels, Devon's president.
"We received bids for various combinations of the assets, and are very pleased
to have reached an agreement on Gabon with Oranje-Nassau. Negotiations are
also under way with potential buyers of the other properties in the West
African divestiture package. We now expect to complete the balance of the
transactions during the first half of 2008."
Devon Energy Corporation is an Oklahoma City-based independent energy
company engaged in oil and gas exploration and production. Devon is one of the
world's leading independent oil and gas producers and is included in the S&amp;P
500 Index. For additional information, visit http://www.devonenergy.com.
This press release includes "forward-looking statements" as defined by
the Securities and Exchange Commission. Such statements are those concerning
forecasts, estimates, expectations and objectives for future operations. Such
statements are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of the company. Investors are cautioned
that any such statements are not guarantees of future performance and that
actual results or developments may differ materially from those projected in
the forward-looking statements.